\nWayne Parry, Associated Press<\/p>\n
\tATLANTIC CITY, N.J. (AP) \u2013 Wall Street experts have seen the future of Atlantic City \u2013 and it has fewer casinos in it.<\/p>\n
\tA panel of analysts speaking at a regional gambling conference Tuesday in Atlantic City said a market that has already lost one casino this year still has too many.<\/p>\n
\tAdam Rosenberg, a managing director with Goldman Sachs, said \u201creducing capacity\u201d is already underway, which he considers positive.<\/p>\n
\tSrihari Rajagopalan, a debt analyst with UBS, agreed.<\/p>\n
\t\u201cYou are seeing the market right-size, which is a positive,\u201d Rajagopalan said. \u201cThere are unprofitable casinos shutting down.\u201d<\/p>\n
\tEarlier this month, the CEO of Caesars Entertainment, which owns four casinos here, made the same point. But Gary Loveman did not say whether he expects to sell or close one of his Atlantic City properties or engage in another Atlantic Club-style takedown of someone else\u2019s property. Caesars and Tropicana bought the Atlantic Club out of bankruptcy, divvied up its assets and closed it on Jan. 13.<\/p>\n
\tSeveral analysts listed Showboat and Trump Plaza among the most vulnerable of Atlantic City\u2019s 11 remaining casinos.<\/p>\n
\t\u201cMy advice to someone who\u2019s thinking about taking on one of these properties, that thinks they can build a better mousetrap is: Don\u2019t do it,\u201d said Joel Simkins, an analyst with Credit Suisse Securities. \u201cIt\u2019s very, very difficult.\u201d<\/p>\n
\tThe analysts also say they don\u2019t expect Revel to sell for anything close to the $2.4 billion it cost to build. Several say even $300 million might be too high for the city\u2019s newest casino, which continues to lose money.<\/p>\n
\tDrew Goldman, a managing director with Deutsche Bank, said Revel is losing $50 million to $80 million a year.<\/p>\n
\t\u201cIf someone said they were going to shut down three casinos in Atlantic City, Revel\u2019s share would increase. But in lieu of that happening, I think it\u2019s very tough.\u201d<\/p>\n
\tThe panel at the East Coast Gaming Congress also says a planned casino in Orange County, New York, will badly hurt Atlantic City, with Goldman predicting it would be disastrous for the seaside resort city.<\/p>\n
\t\u201cI think about how close that is to New York City and northern New Jersey, which is a very big source of customers for Atlantic City,\u201d he said. \u201cIt is 15 to 20 minutes for people in Bergen County, maybe 30 minutes for people in Essex County.\u201d<\/p>\n
\tTimothy Wilmott, president of Penn National Gaming, is competing for that New York license.<\/p>\n
\t\u201cThat\u2019s going to have a dampening effect on Atlantic City,\u201d he acknowledged.<\/p>\n
No replies were posted for this topic.<\/p>\n","protected":false},"excerpt":{"rendered":"
Wayne Parry, Associated Press ATLANTIC CITY, N.J. (AP) \u2013 Wall Street experts have seen the future of Atlantic City \u2013 and it has fewer casinos in it. A panel of analysts speaking at a regional gambling conference Tuesday in Atlantic…<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-7443","post","type-post","status-publish","format-standard","hentry","category-latest-casino-news"],"_links":{"self":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/7443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/comments?post=7443"}],"version-history":[{"count":0,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/7443\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/media?parent=7443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/categories?post=7443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/tags?post=7443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}